--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-18/bridging-canadian-technology-smes-over-the-valley-of-death/" title: "Bridging Canadian Technology SMEs Over the Valley of Death" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:31:39+00:00" date_modified: "2026-07-13T07:31:39+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2009" ipm_keyword: - "Canada" - "Council of Canadian Academies" - "innovation" - "IRAP" - "R&D" - "SBIR" - "SMEs" - "technology firms" - "valley of death" - "venture capital" ipm_research_theme: - "Policy and institutions" ipm_country_focus: - "Canada" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Bridging Canadian Technology SMEs Over the Valley of Death Canonical URL: https://csls.ca/ipm-archive/ipm-issue-18/bridging-canadian-technology-smes-over-the-valley-of-death/ # Bridging Canadian Technology SMEs Over the Valley of Death [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-18-6-Niosi.pdf) Cite this article × Cite this article as: Niosi, Jorge. 2009. “Bridging Canadian Technology SMEs Over the Valley of Death.” International Productivity Monitor, No. 18 (Spring 2009): 80–84. https://www.csls.ca/ipm-archive/ipm-issue-18/bridging-canadian-technology-smes-over-the-valley-of-death/ ## Author: - Jorge Niosi Canada Research Chair in Management of Technology, Université du Québec à Montréal ## IPM Issue 18 Spring 2009 pp. 80–84 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Accounting for the Decline of Canada’s Real GDP Per Capita since Mid-2022 Philip Smith Spring 2024 | IPM Issue 46 | pp. 83–100](https://csls.ca/ipm-archive/ipm-issue-46/accounting-for-the-decline-of-canadas-real-gdp-per-capita-since-mid-2022/) [IPM Issue 47 Editors’ Overview Andrew Sharpe, Bart van Ark Fall 2024 | IPM Issue 47 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-47/) [IPM Issue 46 Editors’ Overview Andrew Sharpe, Bart van Ark Spring 2024 | IPM Issue 46 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-46/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This comment analyses the Panel report and finds that its main diagnosis is correct: Canada’s BERD is low. The Panel report is fairly silent about the necessary improvements to Canada’s innovation system. This comment suggests that while Canada’s tax credit for R&D and Industrial Research Assistance Program (IRAP) are useful programs, they need to be complemented by other direct incentives that may help small technology firms to cross the “valley of death”, complete proof of concept and become eligible to venture capital. The US Small Business Innovation Research (SBIR) program, imitated by Japan, is the best model for such an incentive and Canada should consider its adoption. T HE STUDY Innovation and Business Strategy: Ce commentaire analyse le rapport du Groupe d’experts et constate que son diagnostic principal est correct : les dépenses intérieures de R-D des entreprises au Canada sont faibles. Le rapport du Groupe d’experts est assez silencieux sur les améliorations nécessaires au système d’innovation du Canada. Ce commentaire suggère que si les crédits d’impôt pour la R-D et le Programme d’aide à la recherche industrielle (PARI) du Canada sont des programmes utiles, ils doivent être complétés par d’autres incitatifs directs pouvant aider les petites entreprises technologiques à franchir la « vallée de la mort », à compléter la démonstration de faisabilité et à devenir admissibles au capital-risque. Le programme américain Small Business Innovation Research (SBIR), imité par le Japon, est le meilleur modèle pour un tel incitatif et le Canada devrait envisager son adoption. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-18-6-Niosi.pdf)